Question
The return on the market is 10.5% and the risk-free rate is 2.90%. The investor is aggressive and his beta () is1.25. a) What is
The return on the market is 10.5% and the risk-free rate is 2.90%. The investor is aggressive and his beta () is1.25.
a) What is the required rate of return for this investment using the CAPM approach?
b) What if the () is0.75, but the risk-free rate is 5% and the market return is 10.5%?
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Personal Finance
Authors: Megan Noel, Dan French
2nd Edition
1465246479, 9781465246479
